Intel has inked a deal to acquire AI chip startup SambaNova Systems in a move aimed at bolstering its capabilities in the rapidly evolving field of artificial intelligence (AI). The two companies have signed a nonbinding term sheet, which is not yet finalized and could be dissolved without penalty.
According to sources with direct knowledge of the agreement, Intel's interest in acquiring SambaNova was first reported by Bloomberg last October. At that time, talks between the two firms were in their early stages, and it was noted that SambaNova had previously reached a valuation of $5 billion in April 2021.
It appears that this valuation has since dropped, with BlackRock reportedly cutting the value of its shares by 17 percent over the past year. This reduction likely made Intel a more attractive option for the startup, given its current financial situation.
Intel CEO Lip-Bu Tan aims to refocus the company on AI-first strategies and has stated his intention to shore up debt and spin off non-core assets as part of his restructuring efforts. The US government recently provided Intel with an $8.9 billion injection of capital, which it plans to use to enhance domestic semiconductor manufacturing.
SambaNova Systems was founded in 2017 by Kunle Olukotun, Rodrigo Liang, and Christopher Ré. Olukotun and Ré are Stanford professors; Liang previously worked as an executive at Oracle. The firm produces an AI chip platform for inference computing, which enables large language models to make predictions from vast amounts of data.
In early 2025, SambaNova Systems secured $1.14 billion in funding, according to PitchBook data. In 2020, it raised $250 million from asset manager BlackRock, Intel Capital, venture firm GV, and other investors, bringing its valuation to $2.5 billion the following year after a massive funding round of $676 million led by SoftBank's Vision Fund 2.
The deal's details remain unknown for now. Regulatory approval, liability scrutiny, and financial due diligence are expected to take weeks or even months before the agreement is finalized. A spokesperson for SambaNova declined to comment on the matter.
According to sources with direct knowledge of the agreement, Intel's interest in acquiring SambaNova was first reported by Bloomberg last October. At that time, talks between the two firms were in their early stages, and it was noted that SambaNova had previously reached a valuation of $5 billion in April 2021.
It appears that this valuation has since dropped, with BlackRock reportedly cutting the value of its shares by 17 percent over the past year. This reduction likely made Intel a more attractive option for the startup, given its current financial situation.
Intel CEO Lip-Bu Tan aims to refocus the company on AI-first strategies and has stated his intention to shore up debt and spin off non-core assets as part of his restructuring efforts. The US government recently provided Intel with an $8.9 billion injection of capital, which it plans to use to enhance domestic semiconductor manufacturing.
SambaNova Systems was founded in 2017 by Kunle Olukotun, Rodrigo Liang, and Christopher Ré. Olukotun and Ré are Stanford professors; Liang previously worked as an executive at Oracle. The firm produces an AI chip platform for inference computing, which enables large language models to make predictions from vast amounts of data.
In early 2025, SambaNova Systems secured $1.14 billion in funding, according to PitchBook data. In 2020, it raised $250 million from asset manager BlackRock, Intel Capital, venture firm GV, and other investors, bringing its valuation to $2.5 billion the following year after a massive funding round of $676 million led by SoftBank's Vision Fund 2.
The deal's details remain unknown for now. Regulatory approval, liability scrutiny, and financial due diligence are expected to take weeks or even months before the agreement is finalized. A spokesperson for SambaNova declined to comment on the matter.
. I'm kinda stoked 'bout it! It's like, AI is the future and Intel wanna be the one makin' it happen 
. The more we get tech advancements in that space, the better off humanity'll be 
. Lip-Bu Tan seems like a pretty cool CEO - he's all about refocusing on AI first strategies 
. And with the US gov't give 'em some capital, Intel's lookin' to boost domestic semiconductor manufacturing 
. Can't wait to see what kinda innovations come outta this deal! 
. Intel wants to buy this company SambaNova and I'm not sure why they need to get bigger... didn't they already have some sweet chips? 
. I remember when $5 billion was a big deal, now it just feels like pennies on the table 
. Lip-Bu Tan is trying to fix Intel, but I'm not sure if he's biting off more than he can chew... reminds me of when my dad used to try and fix that old microwave oven from 1997... never worked out 
... they're refocusing on AI-first strategies and shoring up debt, so who knows what kinda innovation will come outta this? Might even help those Stanford profs, Kunle and Chris 
.
it was so peaceful, but then I started thinking about how we're basically living in a world where AI is getting smarter every day... like, have you seen those new language models that can understand human emotions? 
it's wild! anyway, back to Intel and SambaNova Systems, I guess this deal is gonna help them both become more powerful in the AI space 
guess they want to beef up their AI game 
but $5 billion was already a pretty penny last year, and now it's like "hey, i'll take it for cheaper" 
lip bu tan is all about getting his ai house in order, good luck with that 
But the fact that their valuation has dropped by 17% over the past year? That's gotta be a concern for any investor... 
Still, Intel's got some deep pockets and all that cash from the government is helping them out. Maybe this deal will help 'em shore up some debt and get back on track? 
. fingers crossed for more innovation and growth in the AI space 
. Maybe it's a sign of the current market fluctuations? Regardless, I'm curious to see how this deal plays out 
.
! Intel going all in on AI chip startup SambaNova Systems is like, a major game-changer 
. And with SambaNova's expertise in AI inference computing, Intel just got a serious boost to its AI capabilities 
...
what r u guys thinking about this acquisition 
! The AI chip platform they're working on is pretty cool, but I'm not sure if it's enough to make them worth $5 billion... or even $1.14 billion for that matter 
my heart goes out to kunle & Rodrigo 
they're founders of a super cool AI chip startup that's gonna help shape the future... it's crazy how the valuation dropped like 17% 
but i guess intel's deal is a great opportunity for them to level up 
fingers crossed everything goes smoothly during regulatory approval & financial due diligence 
. This deal seems like a big step forward for AI tech, but what about the future of chip manufacturing in the US? 
It's like they're trying to take over the whole machine learning thing! I'm a bit surprised the valuation dropped though - seems like all those big investors were breathing down SambaNova's necks